XRP ETF: 21Shares Files Ripple Coin ExchangetTraded Funds Proposal with SEC

Bittime - Asset management firm 21Shares has just filed an S-1 registration form with the United States Securities and Exchange Commission (SEC) to launch a spot-based XRP ETF. This step was taken in the midst of ongoing litigation between Ripple and the SEC regarding XRP's status as a security.

Collaboration with Other Companies

In this move, 21Shares joins a number of other companies such as Canary Capital and Bitwise that are also seeking approval for an XRP ETF. A 21Shares spokesperson expressed the company's commitment to increasing US investors' access to crypto assets as well as innovating in the sector.

Ripple Legal Dispute Background

This ETF filing comes at the same time as the ongoing legal conflict between Ripple and the SEC. The case began when the SEC alleged that Ripple had raised more than $1.3 billion through the sale of XRP which was considered an unregistered security. About a year ago, Judge Analisa Torres of the US District Court for the Southern District of New York ruled in favor of Ripple, stating that the programmatic sale of XRP was legal and did not violate securities laws. However, direct sales to institutional investors were classified as securities, and Ripple was subject to civil penalties of $125 million.

Currently, both parties are appealing several aspects of the decision, although Ripple CEO Brad Garlinghouse has criticized the SEC as irrational and argued that the case should have been closed earlier.

Also read: 7 Telegram Airdrops that Will Be Listing This November

Hopes for an XRP ETF

Garlinghouse also emphasized that the launch of a spot-based XRP ETF was “inevitable.” Since the start of this year, 21Shares has submitted multiple applications for ETFs. The company previously received approval from the SEC to launch a spot-based Bitcoin ETF, ARK21Shares Bitcoin ETF, which was approved in January after a lengthy legal process.

In June, 21Shares also submitted a registration form for an ETF related to Solana tokens. As of August 26, 2024, the company was still listed in the SEC's EDGAR database for its application, although their Cboe 19b-4 form was rejected, indicating that they may need to re-file or amend the form in order to gain approval from the commission.

Conclusion

The filing of an XRP ETF by 21Shares is a significant step in the company's efforts to enter the cryptocurrency market in the US. Despite having to face legal challenges from the SEC, the company remains optimistic about the future of XRP and the potential for new investment products that can provide broader access for investors.

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